Payroll in Germany runs in EUR on a monthly payroll is near-universal market practice; there is no single statutory mandated cycle cycle, with statutory employer contributions and no general statutory 13th-month salary; weihnachtsgeld is common but contractual or collective-agreement driven. Gracemark operates it end-to-end, humans, not tickets.
Currency
EUR, Euro
Payroll cycle
Monthly payroll is near-universal market practice; there is no single statutory mandated cycle
Working week
The Working Time Act sets an 8-hour standard day, extendable to 10 hours if averaged back to 8 over six months; overtime premiums are set by collective agreement or contract rather than federal statute
Minimum wage
The statutory minimum wage is EUR 13.90 per hour effective 1 January 2026, applying nationwide with no regional variation
13th-month
No general statutory 13th-month salary; Weihnachtsgeld is common but contractual or collective-agreement driven
Employer cost
Employers pay roughly half of social insurance: pension 18.6%, unemployment 2.6%, health at the 14.6% general rate plus a fund supplement and long-term care insurance, so the employer share is typically around 20% to 22% of gross salary
Probation
A probationary period of up to 6 months is common, during which statutory notice under section 622 BGB is 2 weeks
Notice period
Notice under section 622 BGB scales with service from 4 weeks up to 7 months; dismissal protection applies after 6 months in businesses with more than 10 employees, and there is no general statutory severance outside redundancy, social plans or court settlements
Two ways to run payroll in Germany
Own-entity payroll
For long-term presence in Germany. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Western Europe time.
EOR-run payroll
No entity in Germany? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2 weeks (eor), no local incorporation.
Compliance essentials in Germany
Strict termination protection (Kündigungsschutz) after 6 months / 10+ staff
Works councils (Betriebsrat) have real co-determination power
Employer pays 6 weeks of full sick pay before state takes over
Customary 13th-month and 24–30 days leave to stay competitive
Strong scrutiny of false self-employment (Scheinselbständigkeit)
Get a payroll quote for Germany
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